0xfoobar's NFT Royalties Fix

As 0xfoobar explained in his NFT royalties problem and solution blog tweet:

Problem

The NFT market suffers from alignment incentives issues.

The SudoSwap NFT DEX removed royalties from artists.

This guts incentives and funding for ongoing project dev.

Transfer fees can’t be injected without breaking decentralization and standards, and wrapped NFTs can bypass those fees anyhow.

Solution

Harberger Fees.

Harberger Fees are a popular proposal to replace lose volume earnings The Variable substack.

Revenue from the tax can be shared by collectors, so volume, not only price, helps them.

Holders evaluate their property (NFT), and pay Harberger Fees based on that.

If the value is low, holders risk anyone buying it from them at that price at any time.

If the value is too high, the tax they pay is higher at e.g. 10-20% per year.

It’s said Harberger Fees are difficult on UX, but MintyDAO has a 1 click simple UX incoming.

Launch target: by November 2022